Trend Shift Alert – Baby Boomers Buy More Homes Than Millennials
For the first time since the 2014 report, millennials (Aged 24-42) weren’t the largest group buying homes. Baby boomers took over that spot in the 2023 report, with a 39% share. This breaks out into 23% younger boomers (58 to 67 years old) And 16% older boomers (Age 68 to 76). NAR Deputy Chief Economist Dr. Jessica Lautz interprets the change this way, saying, “Baby boomers have the upper hand in the home buying market. The majority are repeat buyers who have housing equity to propel them into their dream home - be it a place to enjoy retirement or a home near friends and family. They are living healthier and longer and making housing trades later in life.” Wondering why boomers choose to buy at this particular moment? About 40% said it was just the right time.
Fewer First-time Homebuyers
If most homebuyers were boomers, it’s not surprising that there were fewer first-time homebuyers overall. Older buyers are more likely to be homeowners than renters, so it’s not their first time around the homebuying block. The breakout shows that only 8% of first-time homebuyers were boomers, while 58% of millennials were buying their first home. Genxers (Aged 43-57) Still make up a significant portion of first-time homebuyers at 21%. The year-to-year drop in all first-time homebuyers (2022 report to 2023 report) Was 8%, falling from 34% to 26%. It’s the lowest percentage since NAR began gathering this data.
